71% of enterprises look for speed improvements, 63% . As recently as 2018, cloud computing companies were attracting criticism for their energy consumption, with some assigning them the epithet energy hogs. More recent articles, however, have pointed out that these concerns are unjust. But its shifting. DTTL (also referred to as Deloitte Global) does not provide services to clients. This trend indicates its more critical than ever to get a handle on forecasting and cost optimization. . However, the truth is far less dramatic than this and mostly comes down to mistakes made by employees. Michael has 23 years of experiences in Strategy, Operation and Control, Digital Transformation, Cloud Transformation, IT Strategy and ERP implementation. Michael also leads the GTM and cross-offering efforts within Consulting in North Region as Regional Consulting Leader. To get access to all of your favorite shows, you will need to use a VPN. Its huge. (2021). Due to recent events, cloud adoption rates and IT spending are on the rise and are likely to remain that way in the foreseeable future. Balancing on-premises and cloud workloads On-Premises vs. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Platform as a Service (PaaS) will grow by 26.1% in 2022. Its market value is estimated at more than $90 billion19, a massive increase over its 2019 valuation of approximately $20 billion. Consequently, several noteworthy cloud computing trends have emerged, so let us take a look at their impact and development. IT workload distribution globally 2019-2021, by cloud type; Hybrid cloud environment usage worldwide: workloads by type 2017; Prediction as to when 95 percent of workloads are cloud-based . Depending on where you live, you may not be able to stream all the TV shows and movies you like. Go straight to smart with daily updates on your mobile device, See what's happening this week and the impact on your business. Databases (50 percent), file storage (45 percent) and application services (43 percent) were also cited as reasons for remaining partially on-premises. to receive more business insights, analysis, and perspectives from Deloitte Insights. 80 percent of the effort to migrate to the cloud comes from 20 percent of the workloads being moved. The eleventh annual Flexera 2022 State of the Cloud Report (previously known as the RightScale State of the Cloud Report) highlights the latest cloud computing trends, including strategies, challenges and initiatives from a broad cross-section of industries and organizations. Therefore, storage services with unlimited cloud storage are a perfect solution for this problem. Check out the latest blogs related to Cloud Management below. An April 2020 survey of 50 CIOs found that respondents expected to see the proportion of total workload done on-premise drop from 59% in 2019 to 38% in 2021, a reduction of 41%.6 Moreover, they expected public clouds proportion of total workload to grow from 23% to 35% in the same timeframe, with private and hybrid cloud reaching 20% and 7% of workload, respectively. Although growth declined to 18% in calendar Q3, this still works out to a 36% increase in the first nine months of 2020. Plus, Linux also has 62 percent of the embedded market share, and 99 percent of the supercomputer market share. At the time of the study, the percentage of organizations with a cloud IT infrastructure revolved around the 45% mark. According to a March 2020 report, more than 90% of global enterprises will rely on hybrid cloud by 2022.3 Another survey from the same month found that 97% of IT managers planned to distribute workloads across two or more clouds in order to maximize resilience, meet regulatory and compliance requirements, and leverage best-of-breed services from different providers.4. But Zoho's example, along with others who have chosen to . Simply put, cloud computing is all about using the internet to connect to online services hosted on the cloud. A new study from the Cloud Security Alliance (CSA) and cloud security company AlgoSec finds that over half of organizations are running 41 percent or more of their workloads in public clouds . Based on limited data, it appears that the Chinese cloud market grew faster than the ROW hyperscale market through September 2020, and we would predict that decoupling would continue, if not increase.18, Finally, it is worth noting that in addition to the pandemic, the move to cloud has a long-running tailwind in terms of demand. container platforms, virtual machines) is also expected to . Data Disk IOPS Consumed Percentage and Data Disk Bandwidth Consumed Percentage; At the VM level: VM Cached IOPS . More than 70% of companies have now migrated at least some workloads into the public cloud, according to Gartner research. The ability to solve complex issues is critical. Access to this and all other statistics on 80,000 topics from, Show sources information What is your opinion on cloud computing? To compete in todays game, organizations must have the cloud play a role in their strategy. And I think I can squeeze another five percent. The number of public cloud users who utilize service beyond basic compute, storage and network services continues to grow. Additionally, 82% of the workload will reside on the cloud. 70% of companies using the cloud plan to increase their budgets in the future. Cybersecurity Insiders, & Fortinet. So do nine of the top ten public clouds. By comparison, 52 percent also spend $1.2 million or more on Azure, indicating Azure has closed the gap for the first time in the eleven years of this survey. Moving from CPUs to specialized AI chips improves AI power efficiency, but AI chip technology is not standing still either. Nominations are now open for our 2022 ranking! This momentum will continue as companies plan to increase their cloud adoption in the wake of COVID-19.. By some metrics, growth was more or less flat in 2020; by some other ways of measuring growth, it increased faster than in 2019, even in the face of the steepest economic contraction in modern history. Although these companies are not necessarily providing detailed quarterly numbers, their commentary has been in line with those that do release exact numbers. Duncan Stewart is the director of research for the technology, media, and telecommunications (TMT) industry for Deloitte Canada. For example, if your default email client is Gmail, or if youve ever shared a file through Dropbox, youre already using the cloud, even if youre unaware of it. Thats the only way we can improve. 3. Some companies saw costs rise by 20% to 50% just from the increase in usage, even without adding in the cost of new applications or data.28 Asorganizations migrate, there is also a cost of duplication, withorganizations paying for both cloud and legacy systems at the same time as well as the cost of synchronizing data between them.29 Going forward, companies should think about cost planning (for instance, to take advantage of reserving instances at a discount), which can reduce expensive fixes due to rushed deployments. We strive to eventually have every article on the site fact checked. Cloud Customers Consume 77% Fewer Servers Let's first look at server utilization and the number of servers required to support a given group of workloads. With 94 percent [14] of all enterprises using cloud services in some form or another, its safe to say that cloud computing is here to stay and will only get even bigger in the future. KPIs for measuring cloud adoption success. Founder Jeff Bezos attributes AWS enormous success to its seven-year head start before facing serious competition. Crucial issues such as security, compliance and location mean that many enterprises can't simply move data or workloads into the public cloud. Visit the cloud economics webpage today. Please enable JavaScript to view the site. This has proven to be invaluable over the past two years to meet evolving needs presented by the COVID-19 pandemics impact on business. With a hybrid cloud solution, you can, for example, only use public cloud resources when you really need them, saving you a lot of money in the meantime. Azure (80 percent running workloads) was the only provider to increase their adoption rate YoY. In next place is Dropbox, the best cloud storage for collaboration, with a still impressive 66.2 percent, followed by OneDrive (39.35 percent) and iCloud (38.89 percent). How to Access the Deep Web and the Dark Net, How to Securely Store Passwords in 2023: Best Secure Password Storage, How to Create a Strong Password in 2023: Secure Password Generator & 6 Tips for Strong Passwords, MP4 Repair: How to Fix Corrupted Video Files in 2019, Simple Cloud Computing Facts You Need to Know, cloud storage services with the best security and privacy, excellent article detailing cloud security measures, storage services with unlimited cloud storage. The key measure for measuring the environmental intensiveness of cloud computing is power usage effectiveness (PUE), in which great strides have been made. The two largest hyperscale providers accounted for 78% of all revenues among the top five hyperscale providers in 2019, and the largest chip company accounted for 82% of total data center semiconductor revenue in the same year.17 At least so far, the effect of COVID-19 has not led to increasing concentration; indeed, the leading hyperscale providers market share declined slightly (bytwo to seven percentage points) during the pandemic-related surge in cloud growth. Quarterly smartphone market share worldwide by vendor 2009-2022, Apple iPhone unit sales worldwide 2007-2018, by quarter, Global market share held by smartphone operating systems 2009-2018, by quarter, Virtual reality (VR) - statistics & facts, Research expert covering the consumer electronics industry, Profit from additional features with an Employee Account. As a Premium user you get access to the detailed source references and background information about this statistic. The likely reason: COVID-19, lockdowns, and work from anywhere (WFA) have increased demand, and we predict that revenue growth will remain at or above 2019 levels (that is, greater than 30%) for 2021 through 2025 as companies move to cloud to save money, become more agile, and drive innovation. We also asked survey respondents to name other key performance indicators they . Amazon Web Services (AWS) had an 80% share of the enterprise cloud adoption in 2022. Cloud Workloads. Get the Deloitte Insights app, 2 years of digital transformation in 2 months, IDC expects 2021 to be the year of multi-cloud as global COVID-19 pandemic reaffirms critical need for business agility, Infrastructure and security challenges threaten multi-cloud and edge deployments, new survey from Volterra shows, Public clouds are bright spot as IT outlays slow due to virus, Hyperscale data center count reaches 541 in mid-2020; another 176 in the pipeline, COVID internet phenomena spotlight report, 2020 to be a bumper year for data centre M&Aamid Covid-19as value surpasses 2019 total, Cloud computing market remains strong, but its not immune to COVID-19, Siemens to let staff Work From Anywhere permanently, Global anything-as-a-service market to reach US$ 344.3 billion by 2024, organizations undergoing digital transformation facilitating growth, Hyperscale operator spending on data centers up 11% in 2019 despite only modest capex growth, Hasty rush to cloud hosting during COVID-19 crisis could set stage for cyberpandemic, Unbundling the cloud with the intelligent edge: How edge computing, AI, and advanced connectivity are enabling enterprises to become more responsive to a fast-moving world, Google Cloud jumps into 5G and telco edge computing with a GMEC vision, COVID-19 leads to shocking cloud computing bills, How to calculate the true cost cloud migration, In times like these you learn to love the cloud, Accelerating agility with XaaS: Many companies are using IT as-a-service to steer their way to competitive advantage, Thriving in the era of pervasive AI: Deloittes State of AI in the Enterprise, 3rd edition, How the great COVID-19 reset can help firms build a sustainable future, Building back better: A sustainable, resilient recovery after COVID-19, Cloud computing is not the energy hog that had been feared, Netflixs Cindy Holland says subscribers watch an average of two hours a day, Data bytes: Cloud CapEx, PUE trends, HPC spending, servers on the edge, AI can do great thingsif it does not burn the planet, Arm Cortex-M55 and Ethos-U55 processors: Extending the performance of Arms ML portfolio for endpoint devices, Corporate Responsibility & Sustainability. Because of this, 92 percent of organizations already have a multi-cloud strategy.4, Enterprises face many challenges, but three of the most prevalent issues include security (83 percent), managing cloud computing spending (82 percent) and governance (79 percent). You need a Statista Account for unlimited access. Optimizing usage is a cost-control measure and migrating workloads can save money while driving agility. Over time, more specialized AI-specific kinds of chips were put into data centers: graphics processing units (GPUs, used for both training and inference), field programmable gate arrays (FPGAs, mainly used for inference), and application-specific integrated circuits (ASICs, used for both training and inference. In Malaysia, the first mainframe, the IBM System/360, was introduced in 1964. Hyperscale data centers do even better on the PUE scale, at around 1.11.2.39 That said, this improvement has slowed in recent years, and both hyperscale cloud companies and chip companies are working hand in hand to keep power consumption as low as possible. We test each product thoroughly and give high marks to only the very best. Are you interested in testing our business solutions? As a result, enterprises are rapidly increasing public cloud spend and workload volumes. Unique workload needs. But the way that deep learning has become more powerful is by using much larger data sets for training, which means more computation, which in turn results in greater energy use. As companies move more applications to the cloud, the cloud market is booming. In an April 2020 survey of security professionals, 94% believed that the pandemic increases the level of cyberthreat. If you are interested in learning more about these terms, we invite you to read our cloud terminologies article, which explains how they function in greater detail. By some metrics, the cloud market grew even faster in 2020 than in 2019, even during the steepest economic contraction in modern history. It is reported that 82% of the workload will reside on the cloud ; Amazon web services have the largest cloud computing market share at 32%. Moving to SaaS solutions eliminates the resources required to manage equivalent on-premises software packages. What was once considered science fiction could soon become reality. By 2021, 33% of surveyed enterprises were running over 50% of their workloads on the cloud, indicating that this trend will continue to increase over time. 26 Cloud Computing Statistics, Facts & Trends for 2023. So with the same energy, we are managing . These are often used by government agencies and large organizations. Linux's strength comes from its open-source design and . So in data centers, normally IT infrastructure is used on average at 40%. The advantages of using a public cloud include lower costs, no need for maintenance, high reliability and almost unlimited scalability.28, Private clouds are used by just one organization. Patrick lives with his wife and daughter in Denver, where they are active in the community and enjoy the Colorado outdoors. In the context of a cloud adoption, a workload is a collection of IT assets (servers, VMs, applications, data, or appliances) that collectively support a defined process. One thing is certain: to remain competitive and maximize the available advantages, organizations must make strategic decisions about cloud computing, cloud architecture, usage of public clouds, effective tooling, cloud migration and cost management. ) does not provide services to clients the technology, media, and (! 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